The Sri Lankan economy exhibited remarkable strength during the first quarter of 2026, achieving a real GDP growth rate of 5.1 percent. This information is based on the most recent National Accounts Estimates published by the Department of Census and Statistics (DCS). The country managed to achieve this growth despite the ongoing challenges posed by Cyclone Ditwah and rising geopolitical tensions in the Gulf region.
In terms of constant (2015) prices, the Gross Domestic Product (GDP) for the first quarter of 2026 amounted to Rs. 3,652,503 million, an increase from Rs. 3,476,664 million during the same period in 2025. When evaluated at current prices, the GDP climbed to Rs. 9,164,652 million, marking an 11.0 percent rise compared to the previous year.
The Services sector continues to be the predominant component of the economy, contributing 54.2 percent to the GDP, followed by the Industrial sector at 27.2 percent and Agriculture at 7.3 percent. The remaining 11.3 percent is accounted for by taxes less subsidies on products.
Sectoral Performance
Industrial Activities: This sector was the key contributor to growth, with an expansion of 7.2 percent. This increase was primarily driven by a 16.3 percent rise in construction activities and a significant 19.5 percent growth in mining and quarrying. The manufacturing sector also experienced a 2.8 percent increase, notably in chemical and pharmaceutical products, which surged by 22.8 percent.
Services Activities: The services sector grew by 3.4 percent, with significant growth observed in insurance and pension funding (22.0 percent), IT programming and consultancy (16.1 percent), and financial services (12.8 percent), the latter benefiting from a favorable interest rate environment.
Agricultural Activities: This sector experienced a modest growth of 1.1 percent, a recovery from a 1.3 percent decline recorded in the same quarter last year. Notably, the cultivation of oleaginous fruits saw a remarkable increase of 64.8 percent. However, the sector faced challenges due to substantial declines in both freshwater and marine fishing, which dropped by 37.8 percent and 25.7 percent, respectively.
Source: Financial Chronicle Biz English | Sri Lanka Business News.
